According to Open Secrets.ORG, the Securities Industry &
Financial Market Association (SIFMA) spent $5.0 million on lobbyists in 2011
and another $5.0 Mil in 2012. In the last election cycle SIFMA made just under
$600,000 in political contributions. They gave roughly equal amounts to the Dem
and Repub Senatorial Committees (Total $55,000) and made made similarly equal
contributions to the Dem and Repub Congressional Committees (Total $65,000). There is a direct connection between the expenditures of these funds and policies enacted or ignored in Washington.
The Nation article at the end of this
piece details the ways in which SIFMA is doing its level best to stymie
community based efforts to use the laws of eminent domain to help underwater
homeowners. The TARP money went to the banks and Wall Street firms, those represented
by SIFMA, but money allocated for programs to help owners went largely unspent.
Cities and towns across America, seeing the failure of the Federal programs, are
still trying to secure the safety and vitality of their communities by avoiding
still more abandoned homes. To do this they must stand up to the banks, trying
to do what Washington can’t or won’t do.
As the Nation notes, these are small change
programs, but SIFMA seems to be fighting them on principle. The city of
Brockton, MA, had planned to help 2,300 homeowners. Richmond, CA, planned to
use eminent domain laws to rescue 624 homeowners. In response, not only has
SIFMA leaned on local authorities, but they have pressured Fannie Mae and
Freddie Mac to apply pressure to short circuit the programs. While Freddie and
Fannie were quasi public-private entities before the financial crash of 2007,
they are currently wholly owned by American taxpayers. They were taken over to
save them from their own malfeasance. Though the bailout of Fannie and Freddie was
only, only (?), $187 billion, as a result of the reserves that were set aside
for problem loans it added $606 billion, with a “B”, to the national debt. Of
the five trillion of debt that has been accrued during the Obama administration,
nearly 15% was a result of the bailout of these two agencies.
Though many other entities have emerged from the emergency
funding schemes enacted around the time of TARP, Freddie and Fannie have not. Though
dividends have been paid, and there is increasing optimism that the moneys will
be returned to the federal coffers at some point, they have a long, long way to
go. Last April Moody’s estimated 2019 as a target date for repayment.
Though, profitable now, the two agencies are not strong
enough to pay back the largesse of the taxpayer any sooner. In addition, Congress,
fearing erosion in the Mortgage market, and a hit to home prices once they do
emerge, is not pushing with any fervor for repayment.
Whatever the repayment plan these two taxpayer owned financial
institutions, Freddie and Fannie, are now siding with SIFMA to ensure that more
homeowners lose their homes. Back when the banks were chasing profits in
derivatives and all sorts of esoteric investment vehicles, often betting
against their own investors in the process, clearly some people who were not qualified
got loans. The wild speculation in bonds, based on those loans, was the reason
for the financial collapse of 2007. While the banks, AIG’s, and other institutions
like Fannie and Freddie that knew better
got TARP funding, the homeowners, in so many cases hoodwinked by the process,
are still underwater.
Does anyone believe
that either the Dems or the Repubs will call for hearings in Congress into this
program of intimidation? Does anyone believe that these same financial
institutions that have paid billions in fines since 2007 for rigging everything
from LIBOR rates to foreclosures to the mortgage market itself can’t afford to
contribute to the solution?
This is the price of Citizens United and the evisceration of
McCain Feingold. Those that attempt to parse John Boehner's ideology, Tea Party ideologue or main stream conservative, are completely missing the point. Boehner's ideology is driven far more by that of his special interest donors than any time worn political theory. Just this week we found that after he defended the company in West Virginia that corrupted drinking water for 300,000 people, claiming that "more regulation is not the answer", we found that he accepted campaign contributions from the company. The company, Freedom Industries filed for Chapter 11 Bankruptcy protection this week.
SIFMA made contributions to 31 House Dems, 46 House
Republicans, 7 Senate Dems and 14 Senate Republicans. They also donated $745 to
one Barack Obama and $30,000 to Mitt Romney. This is what happened to
Dodd-Frank and this'll be what will happen to tax reform, corporate or
otherwise. According to Open Secrets the #1 issue on which SIFMA spends
lobbying money is around policies those that affect the Finance industry, the
business of its members. #2 is taxes. This is the problem of Washington and the
reason Congress sucks eggs on almost every issue important to the average
American citizen. Moreover, this is not a problem of bad old Republicans and
pure as the driven snow, friend of the working man/ woman, Democrats. SIFMA has
bribed every politician on either side of the aisle that they thought could do
them some good. About 1 of every 5 members of the House or Senate received funds
from SIFMA. They haven't corrupted the process. They bought it.
The finance industry is by no means alone in their extravagance.
According to Open Secrets the insurance industry spent about $115 in direct
lobbying last year and that does not include the money they spent on public
issue ads designed to confuse/ sway public opinion. The tech lobby, while
pushing for Immigration reform, is also spending big on reducing their tax
bill. Last year they spent more than $100 million. Mining, Big Oil, Healthcare Institutions,
Big Pharma and the Defense Industry also
each spent at least $100 million on lobbying last year. Direct contributions to
politicians and the Senate and Congressional campaign committees for each party
nearly match what is being spent on lobbying. Then there is the ubiquitous Public
Service ads designed to mold public opinion. So we get clean coal ads designed to obscure
the impact of the dirtiest of fuels on the environment. BP has cleaned up the Gulf.
Nothing to see here. The free exchange of ideas is now a slave market, funded
by entrenched financial interests.
While the rest of America was arguing about race and
abortion and trans-vaginal ultrasounds, while we defended or vilified those,
some called takers, who depend on the $3.00 a day average they receive in supplemental
food (SNAP) benefits, the guys on Wall Street stole our homes and wrecked our
communities. They actually came in the middle of the night and drove away with
everything.
